ESG Considerations in Saudi Megaprojects: An Intent–Implementation Comparative Study of KAUST and KAEC

Abstract

Saudi Arabia is initiating an unprecedented wave of megaprojects under Vision 2030’s directives to drive diversification away from oil and increase the Kingdom’s global ‘softpower.’ However, global developments have highlighted the susceptibility for megaprojects to not meet their cost, time, and benefit targets. Despite abundant academic research relating to “why megaprojects fail?”, there is little comparative, ESG-framed work that links founding intent to operational implementation in Saudi Megaprojects. To this end, this dissertation aims to fill that gap by systematically testing how intentions translate into outcomes. This dissertation investigates how Environmental, Social and Governance (ESG) considerations shape outcomes in two “most-similar” Saudi Arabian megaprojects: King Abdullah University of Science and Technology (KAUST) & King Abdullah Economic City (KAEC). Using a qualitative comparative case design, the study analyses founding intentions and successive implementation within the Kingdom’s Vision 2030 environment. Employing the intent – implementation framework the study reveals structural strides and pitfalls to the development of megaprojects in Saudi Arabia.

Findings revealed three distinct dimensions to megaproject execution in the Kingdom. First, environmental performance is strongest when sustainability is embedded from day one, as retrofitting programs can work but move slower and cost more. Second, delivering social value depends on actual uptake by residents and firms in addition to alignment with the wider society. Third, governance structures are most eaective with single and accountable decision-making structures, as Private-Public Partnership (PPP) structures can work but depend on stakeholder and national alignment. The novel ‘Intent-Implementation System’ under ESG considerations can be used as a foundation for future megaproject research in Saudi Arabia, in which clear mission intentionality, robust governance, and beneficial ESG considerations are the baseline for all Saudi megaprojects.